OPTIMAL ORDERING POLICY UNDER SUPPLIER PROGRESSIVE TRADE CREDIT AND RETAILER PARTIAL TRADE CREDIT POLICY

摘要

Trade credit has been widely present in commercial activities, especially in the retail industry. To attract more retailers and reduce the default risk, the supplier provides the trade credit to the retailers. During the deferred payment period, the retailers can sell the goods and use the revenue for other investments to obtain more profits and ease the financial pressure. Similarly, in turn, the retailer also adopts the credit period policy to its customers. To reduce the risk of default, in this paper,we consider the supplier offers two progressive credit periods to the retailer. At the same time, the retailer offers a partial credit period to its customers. We establish a mathematical model for inventory system to obtain the optimal replenishment cycle under this condition. The objective function is considered as the total cost of an inventory system. In addition, some numerical examples are also given to illustrate the model obtained in this paper.